INCOME TAX ACT, 1961

Section 153A

Search and seizure - Assessment under section 153A - Necessity of incriminating material during the course of search -

Issue arose for consideration as to whether Tribunal had erred in holding that the addition and/or disallowance made during assessment under section 153A should be based on incriminating documents or evidences gathered during a search or from a requisition when the only requirement in section 153A was initiation of a search or making a requisition and not presence of relevant evidences/documents. Held: Tribunal had observed that as such, there was no differentiation found in the intent of the Legislature to discriminate whether the assessments were originally framed under section 143(1) or section 143(3) or section 147. According to Revenue, observation made by the Appellate Tribunal was not correct proposition of law. Revenue tried to explain fine distinction between the nature of the assessment under section 143(1) and Section 143(3). Prima facie, there was no substance in what was pointed out by Revenue. In such circumstances, observation made by the Tribunal could not be agreed as pointed out by Revenue. Such observation has, as such, no bearing while dismissing the Tax Appeal on the proposed questions of law.

Relied:Pr. CIT v. Saumya Construction Pvt. Ltd. (2016) 387 ITR 529 (Guj) : 2016 TaxPub(DT) 3466 (Guj-HC) and Backbone Enterprises Ltd. v. Dy. CIT [124/Rjt/2015, 145/Rjt/2015, 125/RJt/2015, 146/Ahd/2015, dt. 27-11-2019].

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2006-07

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